Ghana Bond Market Sees 63% Weekly Decline as Investors Await Fiscal Clarity

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Ghana’s secondary bond market witnessed a steep decline in trading activity last week, with total turnover falling by 62.9% week-on-week to GH¢571.42 million, down from GH¢1.54 billion previously.

According to market data, trading was largely concentrated in the February 2030 maturity, which led flows with GH¢109.24 million in volumes. The 2027–2030 bonds continued to anchor market performance, capturing 51% of total turnover at a weighted average yield of 15.46%.

Longer-dated instruments also saw moderate interest, with the 2031–2038 maturities accounting for 29% of total trades at an average yield of 15.98%.

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Analysts at Databank Research attributed the slowdown to investor caution and tight liquidity conditions. “We anticipate subdued market activity in the near term, as investors adopt a cautious stance amid tight liquidity while awaiting the upcoming inflation release and fiscal direction from the 2026 Budget presentation,” the report noted.

The sharp dip in market activity comes at a time when investors are reassessing portfolio exposures ahead of fiscal announcements that could shape the interest rate and inflation outlook for the coming year.

Despite the slowdown, market watchers remain optimistic that trading could rebound once the 2026 budget provides clarity on government borrowing, fiscal consolidation, and debt management plans.

Source: Accra Business News

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Ghana Bond Market Sees 63% Weekly Decline as Investors Await Fiscal Clarity

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Ghana’s secondary bond market witnessed a steep decline in trading activity last week, with total turnover falling by 62.9% week-on-week to GH¢571.42 million, down from GH¢1.54 billion previously.

According to market data, trading was largely concentrated in the February 2030 maturity, which led flows with GH¢109.24 million in volumes. The 2027–2030 bonds continued to anchor market performance, capturing 51% of total turnover at a weighted average yield of 15.46%.

Longer-dated instruments also saw moderate interest, with the 2031–2038 maturities accounting for 29% of total trades at an average yield of 15.98%.

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Analysts at Databank Research attributed the slowdown to investor caution and tight liquidity conditions. “We anticipate subdued market activity in the near term, as investors adopt a cautious stance amid tight liquidity while awaiting the upcoming inflation release and fiscal direction from the 2026 Budget presentation,” the report noted.

The sharp dip in market activity comes at a time when investors are reassessing portfolio exposures ahead of fiscal announcements that could shape the interest rate and inflation outlook for the coming year.

Despite the slowdown, market watchers remain optimistic that trading could rebound once the 2026 budget provides clarity on government borrowing, fiscal consolidation, and debt management plans.

Source: Accra Business News

Disclaimer: Some content on The High Street Business may be aggregated, summarized, or edited from third-party sources for informational purposes. Images and media are used under fair use or royalty-free licenses. The High Street Business is a subsidiary of SamBoad Publishing under SamBoad Business Group Ltd, registered in Ghana since 2014.

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